The Dodd-Frank Wall Street Reform and Consumer Protection Act (commonly referred to as Dodd-Frank), which was signed into law by President Barack Obama in July 2010, has brought the most significant changes to financial regulation in the United States since the regulatory reform that followed the Great Depression. It made changes in the American financial regulatory environment that affect all federal financial regulatory agencies and almost every part of the nation’s financial services industry.
Perhaps most significant for HFAs and their affordable homeownership programs, Dodd-Frank established the Consumer Financial Protection Bureau (CFPB) and tasked the new agency with promulgating a series of new regulations pertaining to mortgage lending. CFPB has since implemented rules governing, amongst other things, mortgage underwriting, servicing, borrower disclosures, and loan originator compensation.
Dodd-Frank and HFAs
NCSHA has worked to make CFPB staff and leadership aware of HFAs’ unique role in the housing finance system and to ensure that CFPB’s rules don’t hinder HFAs’ homeownership programs. In several of its rules, CFPB has recognized HFAs’ track record of responsible affordable lending and granted HFAs several special dispensations, including exempting all HFA program loans from its Ability-to-Repay/Qualified Mortgage rule. At NCSHA’s urging, CFPB also amended its mortgage disclosure rule to make it easier for lenders to participate in HFA down payment assistance programs.
NCSHA has also endeavored to ensure that other federal rulemakings authorized by Dodd-Frank account for HFAs critical place in the market. At NCSHA’s urging, HFA program loans were exempt from the Risk Retention rule released by six federal agencies requiring banks to retain a portion of the credit risk for every asset they securitize. This has made HFA loans, and the bonds and securities they underlie, more attractive investments for banks.
Moving forward, NCSHA will continue to advocate to ensure that federal financial regulators consider HFAs’ unique purpose and needs when drafting regulations and other rulemakings.
- To find local housing assistance, please contact your state’s Housing Finance Agency (HFA).
- To learn more about NCSHA’s advocacy work in this area or to attend a related education event, complete the general inquiry form.
- Members of the media, please contact Lisa Bowman, Director of Marketing and Communications, at firstname.lastname@example.org.
- August 31, 2018Federal Regulators Publish Rule to Classify Muni Bonds as High-Quality Liquid Assets
Federal banking regulators – the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation, and the Federal Reserve – published earlier today an interim final rule changing how municipal bonds are treated under federal liquidity standards.
- August 21, 2018SEC Establishes Additional Disclosures for Municipal Securities
The U.S. Securities and Exchange Commission (SEC) earlier today released a final rule that increases HFAs and other municipal bond issuers’ disclosure obligations.
- July 26, 2018House Votes to Extend Federal Flood Insurance Program Through November 30
The U.S. House of Representatives yesterday voted to extend the authorization for the National Flood Insurance Program (NFIP) for four months through November 30.
Federal Financial Regulations - Resources
- September 6, 2018State Housing Finance Agencies: At the Center of the Affordable Housing System
Ten years after the Great Recession forced the federal government to make major changes to the nation’s housing system, state housing finance agencies have become more important than at any other time in their history to the system’s ability to make affordable housing available in America. This new report explains how.
- January 5, 2018Housing Finance Reform FAQ
Why is housing finance reform important? | What are NCSHA’s priorities in housing finance reform? | Didn’t affordable housing efforts cause Fannie Mae’s and Freddie Mac’s financial troubles? | How should the GSEs support affordable housing? | Why should the GSEs be expected to support affordable housing—aren’t federal housing programs enough? | What are State HFAs? | Why should HFAs be the GSEs’ preferred affordable housing partners
- April 13, 2017Representative Jeb Hensarling’s Summary of Changes to the CHOICE Act bill to be Introduced in the 115th Session of Congress
Representative Jeb Hensarling's (R-TX) summary chart of intended changes to the CHOICE Act bill he plans to introduce in the 115th session of Congress.